Equities market drops by 0.2% over profit-taking in NEM Insurance, Guinness, 8 others

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By Olabode Jegede

The equities market of the Nigerian Stock Exchange (NSE) recorded a negative outing last week over investors’ profit-taking in NEM Insurance Plc, Guinness and eight others stocks.

In summary, the NSE All-Share Index (ASI) was down by 55.91 basis points, representing a decrease of 0.2 per cent to close at 29,560.47 basis points from 29,616.38 basis points the market opened for trading.

Consequently, the market capitalisation decreased by N21 billion, closing at N11.103 trillion from N11.124 trillion it opened trading.

Accordingly, the Month-to-Date and Year-to-Date losses increased to 6.80 per cent and 5.95 per cent, respectively.

The oil and gas index emerged the lone gainer, up 0.3 per cent due to investors positioning in Mobil Plc (+4.6 per cent) and Eterna Plc (+2.5 per cent).

On the flip side, the Insuarnce index (-3.1 per cent) declined the most a sell-offs in NEM Insurance Plc (-13.7 per cent) and AXA Mansard Insurance Plc (-5 per cent) weighed on the index. The Industrial and Consumer Goods indices followed suit, shedding 0.7 per cent and 0.4 per cent respectively on the back of price declines in Cutix Plc (-10.6 per cent), First Aluminium Nigeria Plc (-3 per cent), Nascon Allied Industries Plc (-4.7 per cent) and Guinness (-3.9 per cent).

Similarly, The Banking index declined marginally by 0.3 per cent as Ecobank Transnational Incorporated Plc (-7.8 per cent), Union Bank of Nigeria (-7.1 per cent) and First City Monument Bank (-2.7 per cent) posted losses.

The share price of Learn Africa Plc gained N0.23 or 18.70 per cent from N1.23 to N1.46, while May & Baker Nigeria Plc share price rose by N0.40 or 17.39 per cent to N2.70 from N2.30.

Share price of Chams Plc increased by N0.04 or 16.67 per cent to N0.28 from N0.24 while Regency Assurance Plc gained N0.03 or 13.64 per cent from N0.22 to N0.25. In addition to price gainers, Mutual Benefits Assurance Plc rose by N0.02 or 10 per cent to close at N0.22 from N0.20.

On the other side, the share price of Ikeja Hotel dropped by N0.59 or 26.11 per cent to N1.67 from N2.26 while Associated Bus Company Plc share price moved from N0.48 to N0.40, representing a decline of N0.08 or 16.67 per cent.

In addition, the share price of Mcnichols Plc depreciated by N0.10 or 14.71 per cent to N0.58 from N0.68 while Royal Exchange Plc share price dropped by N0.04 or 13.79 per cent to N0.25 from N0.29. NEM Insurance Plc share price sheds N0.32 or 13.73 per cent from N2.01 to N2.33 per share.

Overall, a total turnover of 1.770 billion shares worth N15.264 billion in 17,015 deals were traded this week by investors on the floor of the Exchange in contrast to a total of 3.544 billion shares valued at N20.264 billion that exchanged hands last week in 19,130 deals.

According to the NSE report, “The Financial Services Industry (measured by volume) led the activity chart with 1.257 billion shares valued at N12.127 billion traded in 10,760 deals; thus contributing 71.00 per cent and 79.45 per cent to the total equity turnover volume and value respectively.

“The Conglomerates Industry followed with 226.767 million shares worth N288.198 million in 864 deals. The third place was ICT Industry with a turnover of 184.641 million shares worth N76.618 million in 274 deals.

“Trading in the Top Three Equities namely, Sterling Bank Plc, Transnational Corporation of Nigeria and Guaranty Trust Plc (measured by volume) accounted for 648.906 million shares worth N5.831 billion in 2,293 deals, contributing 36.65 per cent and 38.20 per cent to the total equity turnover volume and value respectively.”

Further breakdown of the trading showed that a total of 35 equities appreciated in price during the week, higher than 14 in the previous week. 31 equities depreciated in price, lower than 55 equities of the previous week, while 101 equities remained unchanged, higher than 98 equities recorded in the preceding week.

Also, traded during the week were a total of 13,740 units of Exchange Traded Products (ETPs) valued at N215,010 executed in 2 deals. However, there were no trades recorded for ETPs last week.

A total of 787,527 units of Federal Government Bonds valued at N795 million were traded this week in 26 deals compared with a total of 18,042 units valued at N19.685 million transacted last week in 24 deals.

Analysts at GTI Securities Limited stated that, “Although there is currently no positive trigger to sustain the recent market resurgence, we believe bargain hunting motive will support positive performance next week as many fundamentally sound stocks are currently underpriced.”

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